Economic Human Activity Systems

The following picture identifies the Human Activity Systems that interact to create the performance of the economy.

System Element: Identification

Structure of Economy Layer, Embedded Economy Model, Doughnut Economics, Kate Raworth, 2017

A person takes on different roles as a member of a human activity system.

The relationships between the various human activity systems are shown in the following diagram.

System Element: Relationships

Relationships of Systems in the Economy Layer, from the Embedded Economy Model, Doughnut Economics, Kate Raworth, 2017

Some key relationships:

  • The state establishes the rules for a market
  • The state determines if infrastructure services are provided in a Market or provided through the commons.
  • The state collects taxes from the enterprise or the household.
  • The state establishes the rules for the financial institutions
  • The state enforces the rules that it has set.